May. 12, 2025
HARRISBURG – Joined by advocates, House Labor and Industry Committee Republican Chairman Seth Grove (R-York) and Reps. Barb Gleim (R-Cumberland) and Aaron Bernstine (R-Butler/Lawrence) today unveiled a package of bills to make Pennsylvania’s Unemployment Compensation (UC) Trust Fund solvent faster and cut taxes on workers and employers.
“The National Federation of Independent Business (NFIB) commends Chairman Grove on this thoughtful legislative proposal. Unemployment Compensation is a vital resource to workers who have been let go, and we need to ensure that the fund is healthy,” said Greg Moreland, Pennsylvania state director of the NFIB. “Unfortunately, the Pennsylvania UC Fund is currently insolvent, resulting in higher taxes on our local employers. We appreciate all the hard work that has gone into this proposal as we work to ensure that future workers can rely on Pennsylvania’s UC system to be there in their time of need. Now, it is time for the Legislature to take action to ensure we aren't taxing small businesses out of existence.”
Grove, Gleim and Bernstine are proposing common sense bills to bring the fund to solvency faster, which would allow for tax cuts of nearly $700 million for workers and employers and would allow for benefits to increase by $72 million for laid-off workers.
Grove has two bills in the package. The first would prevent long claims and incentivize unemployed workers to return to work by tying the maximum benefit duration to the state’s unemployment rate. When unemployment is low, claimants would not be allowed to extend their claims unnecessarily, but the duration of benefits would grow as the unemployment rate increases.
The second would adjust the benefits paid to seasonal workers to bring them in line with workers who work year-round and are laid off. In some cases, a claimant who is a seasonal worker and works three quarters of the year with a spike in pay for one quarter making $32,000 annually can receive $605 a week. By contrast, a year-round worker making $32,000 a year would only receive $315 a week even though he or she worked for a longer period of time. Seasonal workers would still be eligible for unemployment benefits, but their UC benefit rates would reflect the full picture of their earnings and more tenuous attachment to the workforce.
“My legislation creates a fairer, more equitable distribution of unemployment compensation benefits,” Grove said. “This would be done by simply basing a claimant’s weekly benefit rate on the average quarterly wage during the base year to make benefit rates fair for all claimants, no matter how many quarters they worked during the year.”
Bernstine sponsored legislation to require claimants to report other types of benefits that typically indicate they are not able to work, such as workers’ compensation and public and private disability benefits. If the Department of Labor and Industry knows in advance a claimant is receiving benefits related to a disability, it can adequately vet the claim before taxpayer money is sent out the door.
“This legislation is a commonsense measure to uphold the integrity of our unemployment compensation system,” said Bernstine. “By requiring claimants to disclose any concurrent disability or leave benefits, we ensure only those who are truly able and available for work receive unemployment benefits. This transparency helps prevent individuals from receiving multiple forms of assistance simultaneously, which is not only fair but also fiscally responsible.”
The final two bills in the package of five are sponsored by Gleim and would tighten guidelines for existing uc requirements. One of her bills would require claimants, who have been disqualified from benefits for a reason that is the claimant’s fault, to demonstrate a stronger attachment to the workforce before they can requalify for benefits.
“Unemployment compensation is intended to help people who become unemployed through no fault of their own,” said Gleim. “When someone is denied benefits due to their own actions, the law should require a more substantial period of re-entry into the workforce before they can re-qualify for benefits.”
Gleim’s second bill would clarify that when a claimant voluntarily quits employment, in order to receive UC benefits, the claimant must have quit due to a ‘necessitous and compelling’ cause that is attributable to the employment.
“Unemployment Compensation is a critical safety net for Pennsylvanians who unfortunately have lost their job through no fault of their own as they actively seek new employment. Despite significant taxes on the business community, Pennsylvania’s UC system is insolvent and expected to be depleted in the event of a recession. The program also lacks safeguards to ensure resources are directed to those for whom the program is intended,” said Alex Halper, senior vice president of government affairs with the Pennsylvania Chamber of Business and Industry. “We applaud Chairman Grove for advancing this package of UC improvements to help ensure both the financial stability and integrity of this essential program.”
Representative Seth Grove
196th District
Pennsylvania House of Representatives
Media Contact: Greg Gross
717.260.6374
ggross@pahousegop.com
RepGrove.com /
Facebook.com/RepSethGrove